Vertical Analysis of Income Statement The following comparative income statement
ID: 2497260 • Letter: V
Question
Vertical Analysis of Income Statement
The following comparative income statement (in thousands of dollars) for the two recent fiscal years was adapted from the annual report of Calvin Motorsports, Inc., owner and operator of several major motor speedways, such as the Atlanta, Texas, and Las Vegas Motor Speedways.
a. Prepare a comparative income statement for these two years in vertical form, stating each item as a percent of revenues. Round to one decimal place. Enter all amounts as positive numbers.
Calvin Motorsports, Inc.
Comparative Income Statement (in thousands of dollars)
For the Years Ended December 31
Current Year Amount
Current Year Percent
Prior Year Amount
Prior Year Percent
Revenues:
Admissions
$ 145,692
%
$ 143,100
%
Event-related revenue
153,900
%
136,899
%
NASCAR broadcasting revenue
178,011
%
154,071
%
Other operating revenue
35,397
%
42,930
%
Total revenue
$ 513,000
%
$ 477,000
%
Expenses and other:
Direct expense of events
$ 90,801
%
$ 88,722
%
NASCAR purse and sanction fees
101,574
%
89,676
%
Other direct expenses
104,139
%
91,107
%
General and administrative
75,924
%
69,165
%
Total expenses and other
$ 372,438
%
$ 338,670
%
Income from continuing operations
$ 140,562
%
$ 138,330
%
Current Year Previous Year Revenues: Admissions $145,692 $143,100 Event-related revenue 153,900 136,899 NASCAR broadcasting revenue 178,011 154,071 Other operating revenue 35,397 42,930 Total revenue $513,000 $477,000 Expenses and other: Direct expense of events $90,801 $88,722 NASCAR purse and sanction fees 101,574 89,676 Other direct expenses 104,139 91,107 General and administrative 75,924 69,165 Total expenses and other $372,438 $338,670 Income from continuing operations $140,562 $138,330Explanation / Answer
COMPARATIVE INCOME STATEMENT OF CALVIN MOTORSPORTS, INC FOR THE YEAR ENDED DEC 31
Current Year Amount
Current Year Percent
Prior Year Amount
Prior Year Percent
Revenues:
Admissions
$ 145,692
28.4%
$ 143,100
30.0%
Event-related revenue
153,900
30.0%
136,899
28.7%
NASCAR broadcasting revenue
178,011
34.7%
154,071
32.3%
Other operating revenue
35,397
6.9%
42,930
9.0%
Total revenue
$ 513,000
100.0%
$ 477,000
100.0%
Expenses and other:
Direct expense of events
$ 90,801
17.7 %
$ 88,722
18.6%
NASCAR purse and sanction fees
101,574
19.8 %
89,676
18.8%
Other direct expenses
104,139
20.3%
91,107
19.1%
General and administrative
75,924
14.8%
69,165
14.5%
Total expenses and other
$ 372,438
72.6%
$ 338,670
71.0%
Income from continuing operations
$ 140,562
27.4 %
$ 138,330
29.0%
Current Year Amount
Current Year Percent
Prior Year Amount
Prior Year Percent
Revenues:
Admissions
$ 145,692
28.4%
$ 143,100
30.0%
Event-related revenue
153,900
30.0%
136,899
28.7%
NASCAR broadcasting revenue
178,011
34.7%
154,071
32.3%
Other operating revenue
35,397
6.9%
42,930
9.0%
Total revenue
$ 513,000
100.0%
$ 477,000
100.0%
Expenses and other:
Direct expense of events
$ 90,801
17.7 %
$ 88,722
18.6%
NASCAR purse and sanction fees
101,574
19.8 %
89,676
18.8%
Other direct expenses
104,139
20.3%
91,107
19.1%
General and administrative
75,924
14.8%
69,165
14.5%
Total expenses and other
$ 372,438
72.6%
$ 338,670
71.0%
Income from continuing operations
$ 140,562
27.4 %
$ 138,330
29.0%
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